Kanji and Jebba power plants recorded about N30.5bn as losses caused by national grid collapse between 2022 and 2024.
The sum incurred as external losses was caused by the constant failure of the national grid.
Remember that the national grid underwent its latest disruption last Thursday, marking the 11th failure in 2024, hurting both commercial operations and livelihoods.
Consumers, Nigeria’s Transmission Company, and other stakeholders have bemoaned the impact of the collapse on economic activity.
The federal government has blamed the national grid’s periodic collapses on the destruction of power infrastructure such as transmission towers and transformers, as well as old equipment in transmission substations.
It went on to say that various issues, including old and deteriorating facilities, a lack of maintenance and necessary investment, and alleged sabotage by unarmed troops, had all contributed considerably to the humiliating situation.
Similarly, power-producing businesses in Nigeria have lamented the negative impact of frequent grid outages on their operations, which they claim has resulted in massive economic and technical losses over the years.
A document received by our correspondent on Thursday revealed that two of the country’s highest-generating plants had accrued a deficit of N30.55 billion, the largest loss recorded this year.
An examination of the document revealed that the losses were caused by system failure, system instability or high frequency, ramp-down, and unscheduled outages.
It stated that the power plants lost 149,524 megawatts per hour in 2022, totalling N2.38 billion.
The value rose by 164.7 percent to N6.3 billion in 2023, despite a loss of 229,370 megawatts per hour.
The cost has climbed by a stunning 247.14%, or N15.57bn, to N21.87bn, in the first 11 months of 2024, as a result of energy loss of 356,759 megawatt hours.
According to the document, the impact of the grid collapse on hydropower infrastructure includes the destruction of critical equipment, shaft misalignment, lubrication oil contamination, potential turbine damage, loss of power generation capacity, disruption of maintenance schedules, and increased operational costs due to the need for repairs and replacements.
It went on to say that the principal causes of the collapse were grid instability and overload, transmission line overload, inadequate system protection, crucial equipment failure, ageing infrastructure, poor maintenance practices, a lack of timely grid upgrades, and insufficient capacity planning.
Furthermore, unforeseeable environmental conditions, human mistake, and insufficient response protocols during peak demand periods may have all contributed to the disaster.
“When the electricity demand exceeds the capacity of the transmission lines, they can become overloaded. This may lead to overheating, equipment failure, or cascading outages,” the document noted.
In response to the issue, Joy Ogaji, Chief Executive Officer of the Association of Electricity Generation Companies, stated that the grid collapse poses a huge threat to Nigeria’s electricity sector, resulting in frequent outages, equipment damage, and significant income losses for GenCos.
Ogaji, who spoke at a media training in Abuja on Thursday, emphasised that the frequent grid collapses have had a significant impact on Gencos.
She said, “While we certainly need a huge jump in our electricity supply projection, it is imperative to preserve lives and equipment to sustain our rapid economic growth and meet the growing demand; we therefore need to make every effort to efficiently manage all stages of the value chain with an intentional focus on maximising efficiency in the entire electricity chain.
“Grid collapse poses a significant threat to Nigeria’s power sector, resulting in frequent disruptions, equipment damage, and substantial revenue losses for GenCos. Technically, grid collapse can cause catastrophic damage to generators, transformers, and other critical infrastructure, leading to prolonged downtime and costly repairs.
“Commercially, the impact is equally severe, as GenCos face reduced power sales, penalties for non-delivery (in bilateral and cross-border trades), and increased operational expenses. The dwindling resources exacerbate these challenges, making it difficult for GenCos to maintain, repair, and replace damaged equipment, ultimately compromising the reliability and efficiency of the power supply.
“Addressing these challenges requires coordinated efforts from government, regulatory bodies, and the power sector to improve infrastructure, enforce maintenance protocols, and ensure financial viability for GenCos.”
An industry expert, Stephen Ogaji, stated, “The current operational parameters of the grid are not healthy for thermal power plants, especially when one tries to be fully grid code compliant, that is:
“All generators on the grid should be on primary frequency response. If all the market participants in the Nigerian grid strictly play by the grid code, the current system parameters will have a lesser impact on any one individual.”
